The reaction of PhCOCH2Cl with OH– gave the expected α‐substituted alcohol (PhCOCH2OH) in addition to three dimer products. To clarify whether the substitution product is formed by direct SN2 or via carbonyl addition, the reaction of PhCOCH2Cl and OMe– was examined. The reaction gave two products, PhCOCH2OH as the major product after acid hydrolysis and PhCOCH2OMe as the minor product. An electron‐withdrawing substituent on the phenyl ring enhanced the overall reactivity and gave more alcohol than ether. It was concluded that the alcohol was formed via carbonyl addition‐epoxidation route, whereas the ether was formed by the direct substitution route. Copyright © 2012 John Wiley & Sons, Ltd.